Bitcoin Treasury Firm Twenty One Capital Brings Total Fundraise to $685M
Twenty One, a Bitcoin treasury firm, has secured an additional $100 million in funding, bringing its total capital raised to $685 million. This latest round, disclosed in a Thursday SEC filing, comes from existing investors and sponsors exercising options from an April fundraising round. The new funding consists of convertible senior secured notes carrying a 1% coupon and maturing in 2030. This adds to the $385 million initially committed, resulting in a total of $485 million in note financing. This, in turn, supplements the $200 million in private investment in public equity (PIPE) announced last month.
This significant capital injection fuels Twenty One’s progress towards a planned merger with Nasdaq-listed Cantor Equity Partners (CEP). The merger is proceeding despite CEP experiencing a 1.5% dip in morning U.S. trade, coinciding with Bitcoin falling below $107,000. Twenty One’s strategy mirrors that of Michael Saylor’s Strategy (MSTR), highlighting a growing trend of firms employing crypto treasury strategies.
Twenty One, launched by Brandon Lutnick (son of U.S. Commerce Secretary and former Cantor Fitzgerald chairman Howard Lutnick), utilizes a special-purpose acquisition company (SPAC) structure leveraging Cantor Equity Partners. The company boasts notable ownership, including iFinex (parent company of Bitfinex) and Tether, the issuer of the $150 billion USDT stablecoin. Adding further weight to its executive team, Strike CEO Jack Mallers will lead Twenty One.
The firm recently made headlines with a $458 million Bitcoin acquisition earlier this month. This substantial purchase underscores Twenty One’s commitment to accumulating Bitcoin, solidifying its position in the burgeoning crypto treasury market. The influx of capital, coupled with the strategic partnerships and experienced leadership, positions Twenty One for significant growth and influence within the Bitcoin ecosystem. The success of this merger will be a key indicator of the viability of this increasingly popular corporate strategy.
